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Business Debt/LLC debt and bill collector harassment
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Question
QUESTION: My husband and I have an LLC that got in trouble this year. We had 2 credit cards, neither of which had a personal guarantee and were opened in the business name/EIN. Despite attempts to work out a payment plan, they've been handed over to a very aggressive bill collector. He has called at 730am. He has called my mother in law. He has called my husband's sister who lives in an entirely different city. I've asked him to stop and asked for an address to write a cease and desist, but he literally laughs and says those rules don't apply b/c it's a business debt. We have NO assets, none at all and want to officially close the business, but will that stop the calls? Is there any way at all to get him to stop? My mother-in-law isn't in the best of health and she freaks out every time, plus it really isn't anyone else's business.
ANSWER: Dawn,
Even if you close or sell the business, that will not stop the calls. It sounds like you want to talk to the attorney that you have for your business and let him or her know what is going on. They will be able to deal with the debt collector and handle these issues, especially since it sounds like the collector is breaking the law. You can tell this collector you are going to have your attorney handle the case and then the collector can only deal with the attorney.
Good luck!!
---------- FOLLOW-UP ----------
QUESTION: thank you for your response. We do not have an attorney and at this point, cannot afford one. Can you point me to the law that he is breaking (since he insists that he isn't) so that I can deal with him once and for all?
Since I am not involved and have no first hand experience with this company, I do not know if they are breaking the law, if what you tell me about the calls at 7:30 am and to other people not related to the debt are the case, you would have your attorney look into the Fair Debt Collection Practices Act, to be sure laws are being broken and to decide if you have a case.
There are attorney's that specialize in the FDCPA that will be able to help you. You can read the FDCPA yourself at http://www.credit-and-collections.com/pages/startup_resources.php under DEBT COLLECTION LAWS.
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Answers by Expert:
Michelle Dunn
Expertise
As one of the Top 5 Women in Collections, one of the Top 50 Collection Professionals, and winner of the Business Excellence award, I can answer any questions about debt, debt collection, improving business credit, creating a credit policy, enforcing a credit policy and collecting on past due accounts. I can also answer questions in regards to starting a debt collection agency since I have been a bill collector for over 24 years, started and ran my own collection agency for 8 years, and maintain my 12 year old Credit & Collections Association for members of the credit & debt collection industry. I am also the author of the popular and award winning book "Starting a Collection Agency, how to make money collecting money" now on it's 3rd edition. This book has won a the Writers Digest self published award as well as the New York Book Festival Award. I am a repeat contributor to the Wall Street Journal, and have been featured on NPR, CNN, as well as many other national radio and television programs. I have also been featured in national publications such as the Wall Street Journal, Forbes, Smart Money, MSNBC and much more. I have 17 published books to my name and am an accomplished speaker and consultant. I currently write 9 columns for newspapers, magazines and online portals worldwide.
Experience
I have over 24 years experience in debt collection, I started and ran my own collection agency for 8 years and I am the founder & owner of my Credit & Collections Association that I founded in 1998. www.credit-and-collections.com
Organizations
My Credit & Collections Association, I was also a member of the American Collectors Association and Plymouth Chamber of Commerce for 11 years. I am a member of many writing groups as well as my local Women Inspiring Women chapter. I am a member of Know More Media as an expert for their blog on business credit.
Publications
Business NH Magazine, Smart Money Magazine, MSNBC, CNN, Forbes.com, The Wall Street Journal, Home Business Magazine, Entrepreneur Magazine and website, many books, newspapers and television programs as well.
Education/Credentials
I have written 17 books in my collecting money series and one for Entrepreneur Press called the Ultimate Credit and Collections Handbook. My newest book is being published by John Wiley & Sons in May titled, The Guide to Getting Paid, how to weed out bad paying customers, collect on past due balances and avoid bad debt. This book is also being sold to many colleges as a text book.
Awards and Honors
My book Starting a Collection Agency, how to make money collecting money won an award from Writers Digest and the 2007 New York Book Festival in the "How to" category. I have won 2 awards from Dun & Bradstreet and Governor Jean Shaheen. I was nominated as one of the Top 5 Women in Collections twice as well as having been selected as one of Collection Advisor's Top 50 Collection Professionals by my peers.
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